- CFA Exams
- CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 6. The Time Value of Money
- Subject 4. The Future Value and Present Value of a Series of Equal Cash Flows (Ordinary Annuities, Annuity Dues, and Perpetuities)

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**CFA Practice Question**

Jason has $500 in a savings account which earns 5% compounded annually. How much additional interest would he earn in four years if he moved the money to an account that earns 6%?

A. $21.89

B. $25.88

C. $23.49

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**User Contributed Comments**
1

User |
Comment |
---|---|

wuyi |
500*(1.06^4-1.05^4)=23.485 |